Cedar Park OKs $61.5M in 3 ordinances for bonds, certificates of obligation

To fund multiple city projects, Cedar Park City Council approved three ordinances July 9 for the sale and issuance of bond programs and certificates of obligation.

City Council unanimously approved three ordinances that total $61.487 million. The bonds and certificates of obligation include the following.

• $11 million in utility system revenue bonds
• $31.332 million in general obligation bonds
• $19.155 million in certificates of obligation

The $11 million in utility system revenue bonds will finance a portion of the Brushy Creek Regional Wastewater System East Plan Expansion, according to city documents. The expansion is a joint project between the cities of Cedar Park, Round Rock, Leander and Austin. For its portion, Cedar Park will pay $29 million, and the remainder will be paid through community impact fees and the utility fund.

The $31.332 million general obligation bonds are the third and final phase of the 2015 voter-approved bond program, according to city documents. The bond money will be used for streets, at $10.305 million; the library, at $18.5 million; and parks, at $31.332 million. Other phases of the 2015 bonds were issued in 2016 and 2018. The program totaled $96.7 million and included a public safety section in previous issues.

The certificates of obligation total $19,155,000 and will be used for capital improvement projects. $10 million will go to the new library, and $9,155,000 will pay for high-priority drainage projects, according to city documents. Unlike bonds, certificates of obligation can fund public works projects without voter approval, according to the state comptroller.

Dan Wegmiller from Specialized Public Finance, the city’s financial advisor, presented a market report to council before the bonds were approved and explained future credit rating considerations. He said now is the all-time lowest interest rate, and the city has an AA+ credit rating currently.